This brief initial comment from the Legendary Trader Dennis Gartman. For subscription information for the 5 page plus Daily Gartman Letter L.C. contact – Tel: 757 238 9346 Fax: 757 238 9546 or E-mail:firstname.lastname@example.org HERE to subscribe at his website.
“THE WORLD LOVES “DOLLARS” THIS MORNING as the US, the Canadian, the Australian and the New Zealand dollars are all trading higher, and rather materially so, relative to the EUR, the British Pound Sterling, and even the Yen et al. Surprisingly good news regarding employment in Australia and comments from the Governor of the Reserve Bank of New Zealand suggesting that the Bank shall be quick to remove excess liquidity from the system because of stronger than expected economic activity there are sending those two currencies higher, while continued news from Canada regarding economic strength is helping to put a bid to that currency. “
From the Wall Street Journal:
Is the Dollar finding a bottom? If you think the its 50-day moving average is significant, well then the answer is yes.
The WSJ’s Ahead of the Tape looks more closely at the question:
“U.S. Dollar Index, which tracks the greenback’s performance against a basket of currencies, closed on Tuesday at its highest level since early November. The euro ended below $1.48 in New York trading for the first time in more than a month.
The dollar has closed above its 50-day moving average for three consecutive days for the first time since March, when it was still the globe’s safe-haven currency. Such technical indicators can mislead, but this suggests the buck has upward momentum, at least for the short term.”